The CEO's Address with Greg Newman | The Snobbery of the West

World of Oil Derivatives

Group CEO Greg Newman discusses the challenges and evolving landscape of the oil derivatives market. He highlights the central role of exchanges in price discovery and liquidity, noting that these exchanges have become the heartbeat of the market.
Greg also reflects on the historical dominance of Western financial centres in oil trading but suggests that the future may shift towards other regions, particularly the East. He cites the example of ADNOC's Murban contract and recent moves by Saudi Arabia's Tadawul to acquire Dubai Mercantile Exchange, signalling a broader trend of diversification away from Western dominance.
Greg also emphasizes the rising influence of retail investors, particularly in Eastern markets like China, where retail trading has driven significant liquidity growth. He mentions Onyx's strategic initiatives, including a deal with the Jakarta Exchange, to tap into this retail-driven momentum. Greg predicts a seismic shift in the oil derivatives market, with Eastern exchanges and retail investors playing a central role in its future expansion. The market, which could reach $145 trillion by 2027, is poised for radical transformation, driven by the growing importance of retail participation and the emergence of new global trading hubs.